1. Accused 1 to 7 and 9 to 12 in Crime No. 175/2011 registered with Krishna Raja Police, Mysore and subsequently converted in to CC.No.842/2013 on the file of Judicial Magistrate First Class (III), M3rsore, have come up in this petition seeking quashing of aforesaid crime number as well as CC.842/2013 which is registered for offences punishable under Sections 420.. 465, 468, 474 r/w 34 of IPC.

2. It is not in dispute that the matter is referred to investigation and subsequently, charge sheet is filed for an offence punishable under Section 420 r/w 34 of IPC, which is challenged by accused 1 to 7 and 9 to 12. So far as accused No.8 is concerned, it is stated that he died subsequently. This petition is filed on the ground that, prior sanction is required under Section 111(2) of the Karnataka Cooperative Societies Act, 1959, more particularly, with reference to the proviso which necessitates for sanction of the Registrar or Director of Cooperative Audit. Said Section is culied out hereunder for the sake of convenience.

"111 (2) No prosecution shall be instituted under this Act without the previous sanction of,-

(a) The Director of Co-operative Audit in respect of matters ar